What does it mean to be unbanked?
Last 2017, World Bank disclosed that there are 1.7 billion “unbanked” people worldwide. Although there are still unbanked individuals in developed countries, it is undeniably true that most of the unbanked came from developing countries. There is a belief that there is a strong bond or link between living in poverty and lacking financial inclusion. So, what does it mean to be unbanked?
A person is said to be unbanked when he/she does not have a hold of any bank accounts or credit unions. A family household is called unbanked when there are no family members that have accounts like savings, atm, etc.
We have here 3 straight facts about the unbanked:
1. Women reported being more unbanked
In 2017, 980 million women did not have bank accounts, making up 56% of all unbanked adults globally. According to the World Bank, even in the small countries with a low percentage of unbanked individuals, women still account for the most unbanked.
2. Unbanked people have their reasons for being unbanked
The most reason provided for this matter is, of course, having lack of money. But even though, many people with enough income are still bound to their choice of not opening an account. These reasons may vary from, the distance from their household to the bank, documentation requirements, their distrust in the financial system, and some little religious beliefs/concerns or so.
3. Technology is seen as a front runner
It is a given fact that many unbanked people are at the poverty line. It is seen that providing solutions to improve the financial inclusion of the unbanked population, can boost economic growth and lift the impoverished people out of the poverty line. It is said that the more people are banking today, the more they are banking on their futures. With technology, such as new fintech, the unbanked’s financial inclusion is seen as more vivid now. The promotion of digital payment systems, which allow digital or mobile access to financial services must be seen as one of the biggest factors that can affect a change in the unbanked situation.
During the time of the Covid-19 pandemic, the Philippines has seen a steady increase in the adoption of financial technologies. With digital finance, the 41 million unbanked filipinos can have access to financial services, making them financially included.
In countries worldwide, being unbanked too often leads to being unsafe, unequal, unprepared, and unsuccessful. But, we could undo that. If you think banking isn’t really for you, then you might feel rather comfortable with fintech. With fintech, the unbanked can now join the world of financial inclusion and experience the benefits of its financial services.
We at Piccopay, believe that everyone has the right to be financially included. With fintech as our strength, we could be the “Un (doer)” to your “Unbanked”
Visit us at piccopay.sg, for more information.
Saiesha. “5 Facts about the World’s Unbanked Population.” The Borgen Project, Saiesha Https://Borgenproject.org/Wp-Content/Uploads/The_Borgen_Project_Logo_small.Jpg, 1 June 2022, https://borgenproject.org/unbanked-population/#:~:text=In%202017%2C%20the%20World%20Bank,population%20lives%20in%20developing%20countries.
Hilario, Edgard. “Number of Unbanked Filipinos Decreases as Digital Finance Supports Daily Needs.” Manila Bulletin, 19 May 2022, https://mb.com.ph/2022/05/19/number-of-unbanked-filipinos-decreases-as-digital-finance-supports-daily-needs/.
3 facts about the Unbanked was originally published in Piccopay Pte. Ltd. on Medium, where people are continuing the conversation by highlighting and responding to this story.